When converting currency there are a number of factors you need to consider: When do you need the currency? How many payments do you need to make? How will exchange rate fluctuations affect you?

Our currency specialists will help you decide which type of transaction is best for your needs. This includes the facility to reduce your currency risk by fixing the exchange rate for up to two years ahead.

How you can reduce your currency exchange risk

• Immediate conversions.

  In most cases you can convert your money immediately, your currency can then be transferred just two business days later.

  This is the quickest way of exchanging one currency for another. A 1% deposit will usually be required when placing your order.

• Fix the exchange rate until a fixed date (between two days and up to two years ahead).

  In five months' time you need to pay a French developer €200,000 for your new property. You decide not to take the risk that the exchange rate in five months' time could result in your property costing more in sterling.

  You call Hargreaves Lansdown and discuss your options with a currency specialist. You decide to fix the exchange rate for a set date in five months' time when you will need the euros. You accept the exchange rate of €1.2050 and pay the required 10% deposit which will go towards paying the final amount in five months' time.

  You are now safe in the knowledge that whatever happens to the exchange rate, the cost to you is fixed at £165,975.10 (€200,000 / €1.2050).

• Fix the exchange rate for a period of time.

  You are buying a French property costing €200,000 and receive a rough estimate of when it will be finished. Without an exact date of when you need to pay the €200,000 you decide to fix the exchange rate for a set period of time to cover the eventuality of building work finishing earlier or later than expected.

  You call Hargreaves Lansdown and request a quote with a settlement period of between three and six months' time. You're quoted €1.2045 and decide to go ahead after paying a 10% deposit. In five months' time you receive notification that the building work is finished and payment is due. All that remains for you to do is call Hargreaves Lansdown, pay the balance of your transaction and arrange a transfer date for your euros.

  Alternatively, if the building work had taken the maximum amount of time, you could have waited until the end of the six months to pay the balance and receive your euros.

• Make multiple transfers at the same fixed exchange rate.

  You choose when to receive your currency over a three month period. The last receipt date can be up to two years ahead.

  This type of transaction gives you the added flexibility of splitting the overall value across a number of payments.

Simple, low-cost monthly transfers abroad

When transferring £750 per month, you could save up to £550 a year when compared to the services offered by high-street-banks.

You can choose from two simple solutions:

1. Variable exchange rate - each month a set amount of sterling is collected by Direct Debit, converted at the prevailing exchange rate and transferred to your chosen overseas account.
2. Fixed exchange rate - each month a set amount of sterling is collected by Direct Debit, and a fixed amount of currency is bought at an exchange rate agreed at the outset of your plan.

Summary of the benefits of the low-cost monthly transfer plan:

• Competitive exchange rates and no commission
• Free transfers for amounts over £500 per month (£7 per month if under £500)
• Hassle-free - ongoing payments are collected by Direct Debit
• Monthly transfer plans can be established for between 6 and 24 months.

Speak to a foreign exchange specialist

If you need any help or would like to speak to a currency specialist about your options, call our Helpdesk on 0117 311 3257 (8.00am to 5.00pm, Monday to Friday). Alternatively you can email us.

Open a Currency Service account today